December inflation pegged at 1.2-2%

MANILA, Philippines — Inflation may have settled between 1.2 and 2 percent in December, with prices likely lifted by the impact of late season storms and strong demand during the holiday season, the Bangko Sentral ng Pilipinas (BSP) said.

READ: Inflation cools to 1.5% in November

The central bank’s projection suggested that there’s a chance this month’s price gains were higher than November’s 1.5 percent clip. But it also indicated that inflation likely stayed subdued.

“Upward price pressures may come from increased prices of major food items due to the lingering effects of adverse weather and strong holiday demand, as well as higher LPG and gasoline prices,” the BSP said.

“These pressures could be partly offset by lower electricity prices in Meralco-serviced areas and declining kerosene and diesel prices,” it added.